Which of the following illustrates the medium-of-exchange function of money?
A)writing a check to buy a new Volkswagen
B)noting that the price of a $20,000 Volkswagen is 30,000 German marks
C)keeping $20,000 in cash in your mattress instead of buying a new Volkswagen
D)driving your $20,000 Volkswagen to a friend's house

Question

Quizplus · Accepted Answer

Writing a check to buy a new Volkswagen is an example of using money as a medium of exchange, as the check serves as a substitute for cash in the transaction.

Which of the Following Illustrates the Medium-Of-Exchange Function of Money